Betting on Power
MSP clocked revenues of nearly Rs 400 crore in FY10. The management is bullish on the future growth and betting on power to considerably contribute to the top line. Company owns a 18 MW power plant currently and is planning to set up another one in Q2 FY 12.

Quarterly Performance
MSP delivered excellent performance for the quarter ending June 30, 2010. Company's net sales increased by 30.22 pct at Rs 116.41 crore while net profit considerably jumped by 120.08 pct at Rs 8.62 crore compared to same quarter previous year. MSP recorded EPS growth of nearly 121 pct y-o-y (year-on-year) while the EBIDTA margins are pretty consistent While the current upmove is justified looking at the performance of the company,the stock along with its smallcap peers trade at a considerable discount to midcap names like Usha Martin. We expect the power sector to re-rate in the next one year and this stock should be on one's radar.

Technicals
The stock hit a 52-week high of Rs 56 on thursday on massive volumes. The chart shows a clear breakout and the stock formed a classic Ascending triangle pattern with a target price at Rs 65 Stock is likely to witness correction to Rs 46-48 levels next week. Risky traders can try their luck for an upmove to Rs 60-65 levels with a stop at Rs 43.